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The intangible assets section of Cheyenne Corporations balance sheet at December 31, 2017, is presented here. Patents ($71,000 cost less $8,000 amortization) $63,000 Copyrights ($54,500
The intangible assets section of Cheyenne Corporations balance sheet at December 31, 2017, is presented here.
Patents ($71,000 cost less $8,000 amortization) | $63,000 | |
Copyrights ($54,500 cost less $43,400 amortization) | 11,100 | |
Total | $74,100 |
The patent was acquired in January 2017 and has a useful life of 10 years. The copyright was acquired in January 2011 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2018.
Jan. | 2 | Paid $27,000 legal costs to successfully defend the patent against infringement by another company. | |
Jan. | June | Developed a new product, incurring $249,000 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $10,000. | |
Sept. | 1 | Paid $47,000 to a quarterback to appear in commercials advertising the companys products. The commercials will air in September and October. | |
Oct. | 1 | Acquired a copyright for $237,000. The copyright has a useful life and legal life of 50 years |
1.) Prepare journal entries to record the transactions.
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